Proactively Protecting Your Investment
In real estate transactions, title insurance plays a vital role in eliminating the risks that might otherwise be faced by buyers and lenders. Defects in title can cause substantial losses without insurance. Potential defects include such things as liens, encumbrances, fraud, forgeries, documentation mistakes, and easements. Before a title insurance product will be issued, the company will first conduct in-depth research to check for any of these or other problems with the title. If issues do exist, the company will either work to resolve them or exclude them from coverage. Brightline offers four different title insurance products, all of which can help to protect you in your real estate transactions.
Owner’s Title Policy
An owner’s title policy protects the purchaser of real estate. The policy is issued for the amount of the property’s purchase price. The owner’s title policy will remain effective for however long the buyer and his or her heirs continue to own the property. This title insurance product identifies risks that might exist before the purchase is completed. If there are attacks against the title after the purchase, the owner’s title policy will defend against them.
Mortgagee’s Title Policy
A mortgagee’s title policy is a title insurance product that protects the lender in real estate transactions. This type of policy assures the lender that its lien is enforceable, valid and secured by the property that is being purchased. The mortgagee’s title policy will normally be issued in an equal amount to the loan, and it will decrease over time as the mortgage is repaid.
Mortgage Modification Policy
When a mortgage loan is modified, a mortgage modification policy can help to protect the original lienholder’s priority so that it is not lost during the modification process. This helps to protect the secured interest of the first lienholder so that it does not lose its priority or suffer damage through a mortgage modification.
Trustee Sale Guarantee Policy
When a home or other property goes into foreclosure, a trustee sale guarantee policy can help to protect the trustee and the beneficiary of the foreclosure by guaranteeing that all of the foreclosure requirements are being met under the law. This type of policy will remain in effect throughout the foreclosure process and delivers the information that is needed to make certain that the foreclosure complies with the statutory requirements in the state in which it occurs.
Having title insurance in place before a real estate transaction is imperative for all of the interested parties. Most lenders require buyers to have title insurance before they will agree to extend mortgages, and mortgagees likewise need title insurance products to protect their interests. To learn more about the title insurance products that are available from Brightline Title, contact us today or place your title insurance policy order by completing our online form.